Gourmet Pets Is Interested in Computing the Break-Even Point for Its

question 239

Multiple Choice

Gourmet Pets is interested in computing the break-even point for its new product Prime Cuts. The fixed costs of adding this product to the product line amounts to $20,000. Variable costs to produce one package of Prime Cuts are $2. Prime Cuts will sell for $6 per package. The break-even point would be

• A) 900 units.
• B) 2,800 units.
• C) 5,000 units.
• D) There is not enough information to find the correct answer.

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Definitions:

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